If you’re making sourcing decisions solely based on price, you could be missing 20-30% of your actual offshoring costs. As part of its Assess Costs Everywhere program, the U.S. Department of Commerce provides a free Total Cost of Ownership Estimator®* that helps companies account for all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—to determine the true total cost of ownership.

Using this information, companies can better evaluate sourcing and identify alternatives—or make a stronger case for themselves when selling against offshore competitors. To see this in action, take a look at the case studies from companies already engaged in reshoring.

*The Total Cost of Ownership Estimator is provided by the Reshoring Initiative®.

• Shorter lead times
• Higher product quality and consistency
• Lower inventory levels, better turns
• Better responsiveness to changing customer demands
• Minimal intellectual property and regulatory compliance risks
• Improved innovation and product differentiation
• Greater access to a skilled workforce

• Centralized location with good access to the entire U.S. market (allows for profitable proximity sourcing and siting strategies)
• Outstanding infrastructure for logistics and distribution
• Skilled, hardworking employees
• Competitive wage costs (based on Midwest cost-of-living, rising offshore wages and the state’s Right-to-Work status)
• Stable, reliable domestic market
• Greater flexibility in batch sizes and just-in-time delivery

(For example: If you’re engaged in the food supply chain, freshness matters! Buy, invest, build and process closer to where the producers are—right here in Kansas!)